THIS MONTH'S HUGE COMMODITY WINNER
We can hardly remember a better week for the commodities market. Meaningful new highs were reached for crude oil, natural gas, coal, gold, silver, platinum, corn, soybeans, coffee, sugar, cotton, canola, rice, oats, and tea. But the truly huge move in resources right now is happening in palladium...
Palladium is platinum's sister metal. Like platinum, one of its major uses is in catalytic converter production... which makes it a play on the world's environmentalism boom. If platinum increases in price, auto manufacturers are incentivized to use palladium. Now here's the interesting part...
Platinum has increased in price 50% since October. During much of this rally, its substitute sister did nothing but move sideways. In the
past month however, palladium has played a
"catch up" game on steroids. As you can see
from our chart of the week, palladium has gained
36% in just the past month. It's a bull market in
precious metals!
– Brian Hunt
